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Experts' Take

Pradeep Jain, Chairman, Parsvnath Developers

Mr. Pradeep Jain

Mr. Pradeep JainThe provisions in the Real Estate (Regulation and Development] Bill 2013 like escrow mechanism, timely completion of projects and projects-to-be launched after all, sanctions are good for the industry. It wilt help industry grow in an organised way and will check entry for the small time unorganised developers. With regards to the project wise 70 per cent deposit, it seems difficult to implement as cost of construction differs state wise. Instead of this, the Cabinet should propose the cost of construction plus 10 per cent as escrow account. This way, it will help developers cover the debt cost as well as sanction and the holding cost as well. The Government must allow some breathing space to developers; if it plugs all the cash flow of the developer, it will impact overall business. However, creating a separate provision of escrow account is in itself a very good move. Other clauses like all approvals before launch and abolition of pre-launch sate will also boost sentiments across sector.